Markets Subdued On Dull Lme Trade

There is absolutely nothing going on the pre-markets are quiet, the rings are quiet, and it could stay like this until the Labour Day holiday (in the US) is out of the way, one trader said.

Most metals are confined to narrow technical trading ranges, and with physicals likely to remain slow there is little immediate prospect of a pick-up in activity.

Copper's main focus during a sluggish session was the September spreads, with Sept/one day $3/4 backwardation, Sept/threes at $38/39, and Sept/Oct $19/21. The overall cash/threes spread remained soggy at $38 backwardation.

The forward market crumpled during the rings, unable to followthrough Wednesday's gains, although losses were restricted by caution over current labour talks at Phelps Dodge's Chino facilities and Salvador in Chile. Prices closed the kerb at $1,934 a tonne, down just $2 from the previous kerb.

 

Analysts say the broad $1,900/70 range shows no sign of being breached at present with price movements contracting into ever-narrower parameters. An equally subdued atmosphere pervaded the rest of the complex, with prices mixed, depending on the prevailing technical wind.

Aluminium initially held steady, but subsequently drifted lower, depressed by an imminent cross in the moving averages, with another test of underlying consumer interest at the floor of the $1,480/1,500 range expected.

Last kerb business was at $1,485 a tonne, down $5 from the previous close. Nickel tried to extend Wednesday's technical advance, but encountered expected tough resistance above $7,300 and subsided to finish the morning at $7,290, still up $40. Zinc stabilised after yesterday's sell-off, averting a test of $1,010, and was $3 higher at $1,025.

Lead drifted lower, meanwhile, and shed $6 at $814.

Alloy was largely neglected, closing at a stable $1,285/90 a tonne, while tin remained glued to overnight levels, finishing at $6,150/60.